Owen, who was on the bench for the Champions League final ahead of top-scorer Dimitar Berbatov, had started just 15 of his 48 United appearances, but claimed last week that he wanted to stay at the club.

Now, the 31-year-old has been offered new terms that will keep United's attacking options strong ahead of next season.

"I'm delighted to have agreed a one-year extension to my contract,'' Owen told the Man Utd website. ''To play alongside so many great players, under an exceptional manager, and in front of so many incredibly passionate supporters, is a real inspiration. I can't wait for next season to start."

Manager Sir Alex Ferguson added: "Michael has proved to be a top footballer. It's unfortunate Michael didn't get more opportunities but the form of Chicharito put everyone in the shade and his partnership with Rooney proved invaluable. I am delighted Michael is staying for a further year and we will look to give him more opportunities in the new season."